Ford Invests $75 Million to Convert Truck Plant for Small Cars

The robotic welders and other equipment that are currently building SUVs at Ford's Michigan Truck Plant will soon be replaced with equipment to build compact and subcompact cars.Credit: Sam VarnHagen/Ford Motor Company

Ford Motor Company is following through on its plans to produce more
small cars with a $75 million investment in the body shop of its
Michigan Truck Plant. Starting in November, the company will begin
disassembling the tooling and equipment for the Ford Expedition and
the Lincoln Navigator, and by mid-2009 that same equipment will start
producing those vehicles at Ford's Kentucky Truck Plant. That will
pave the way for small-car production to begin at the Michigan Truck
Plant in 2010 (it's not clear yet if Ford will also change the name of
the facility). Meanwhile, Ford will add a third shift to the nearby
Wayne Assembly Plant at the start of 2009, and the 1,000 employees
from the Michigan Truck Plant will be put to work at that plant,
producing the hot-selling Ford Focus.

The Michigan Truck Plant is one of three Ford plants in North America
that will be converted from trucks and sport utility vehicles (SUVs)
to instead build small fuel-efficient compact and subcompact cars. A
facility in Mexico that currently produces F-Series pickups will begin
building the new Fiesta subcompact car in 2010, while the Louisville
Assembly Plant in Kentucky, currently the home of the Ford Explorer,
will start producing other small vehicles in 2011. See the Ford press release.

Producing more compact and subcompact cars will yield significant
gains in fuel economy for Ford, but of course those gains will be
gradual and incremental. Looking more towards those technologies that
can yield revolutionary gains in fuel economy, the Progressive
Automotive X Prize announced on August 27 that it is now accepting
official registrations for its competition. To date, more than 120
teams from 17 countries have declared their intent to compete for the
$10 million prize, which will be awarded those that can design and
build production-capable, market-friendly vehicles able to achieve the
equivalent of at least 100 miles per gallon. Teams have until the end
of this year to register, and those that qualify will participate in a
long-distance stage race that will be judged on speed, distance, urban
driving, and overall performance, while also having to meet the fuel
economy goal and strict emissions standards. DOE is providing nearly
$3.5 million for education and outreach related to the prize. See the
press release on the Progressive Automotive X Prize Web site.